BURDEN OF RATES

Dominion, Volume 25, Issue 169, 13 April 1932, Page 5

BURDEN OF RATES

Local-Body Methods AN INQUIRY URGED Chamber of Commerce View A resolution urging the appointment of the commission to inquire into the whole system of local body administration or the retention of the National Expenditure Commission for that purpose, was carried unanimously at a meeting yesterday of the executive of the Associated Chambers of Commerce of New Zealand. The terms of the resolution are as follow: —“That this association urges on the Government the necessity to delay no longer in setting up the promised commission to inquire into the whole system of local body administration in order to relieve the taxpayers of a considerable part of the rating burden, alternatively that the Government retain the services of the National Expenditure Commission for the purpose of conducting that investigation and reporting to the Government.” In a letter approved for dispatch to the Prime Minister, the association commented on the fact that Mr. Forbes had stated through the Press that he did not see much hope of the commission being appointed in the meantime. It was asked what circumstances had arisen that had made the need for the investigation any less pressing than it was a year ago when the Prime Minister gave a promise that the commission would be appointed. The only relief which the Prime Minister indicated might be given was. immunity from the 10 per cent, penalty on unpaid rates, which was a mere bagatelle compared with the incalculable benefits to the whole community that would result from an Investigation of local body administration, leading to the redistribution of local body districts, the readjustment of rating systems and the coordination and amalgamation of staffs, plant, and equipment. The association said that the Government was only contributing to* the present position, it having made financial provision for local bodies to the extent of £2 million through the exchange credits pool, extended exemption from taxation to all trading public bodies, and as recently as December last authorised another £382,800 in loans for local bodies. The association expressed the hope that the Prime Minister would not be deterred by the criticism of some sections of the community against the employment of commissions, and said it was not concerned with the machinery employed so long as the imperative business of the country was performed in a proper manner.

The association said that the 687 local bodies in New Zealand were responsible for an extraordinary condition of over-government, with all its attendant expense, nnd unless the Government took prompt action the upheaval of the local body system would be forced on the country by the rapidly marching circumstances of financial stress.